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No fewer than 16 people have lost their lives after a huge fire broke out at a apparel factory in Bangladesh, with emergency services cautioning that the number of victims could increase.

Sixteen bodies have been found but were charred unrecognizable, the firefighters said.

Heartbroken relatives gathered outside the multi-story factory in Dhaka's Mirpur area on that day in looking for their loved ones still missing.

The inferno, which broke out at the factory around noon, was put out after several hours. But an nearby chemical warehouse continued to burn, emergency services said.

Until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been fully extinguished, journalistic accounts said.

Fire department authorities have not determined which of the two buildings ignited initially.

According to bystanders, the chemical warehouse stored industrial bleaches, synthetic polymers and industrial peroxide, all of which can intensify fires. Polymer products also emits hazardous smoke when combusted.

Police and military officers are still searching for the proprietors of the factory and the warehouse, emergency services head the fire service official briefed journalists.

An inquiry on whether the warehouse was operating legally is also in progress, he noted.

Crying family members stood outside the charred buildings, many of them holding photographs of their lost relatives.

Among them is a man seeking urgently for his daughter, his loved one.

"When I heard about the fire, I came running. But I still cannot locate her... I just want my loved one back," he stated to news media.

The catastrophic occurrence has another time emphasized the security issues facing Bangladesh's clothing sector, which employs countless of workers and is a major source of foreign revenue for the nation.